Roadmap to help get your kids into the property market this year

For many families, helping get your kids into the property market feels increasingly complex. It’s not just about saving a deposit anymore—banks look closely at spending habits, existing debts, income consistency, and overall financial behaviour.

The good news? With the right roadmap, parents can help set their kids up well before they ever submit a home loan application. This guide focuses on practical, bank-friendly steps that build a strong foundation—while still outlining advanced strategies like guarantor loans where appropriate.

Step 1: Build Strong Financial Habits Early

Before property enters the conversation, banks want to see responsible money management. Parents can help by encouraging:

• Regular savings habits (weekly or monthly transfers)
• Clear separation between spending and saving
• Avoiding reliance on buy-now-pay-later or short-term credit
• Use Multiple Accounts Strategically

Setting up multiple bank accounts can make a big difference when lenders assess behaviour. A simple structure may include:

• Everyday account – daily spending
• Bills account – rent, utilities, subscriptions
• Savings account – deposit savings only

This structure shows discipline, consistency, and an ability to manage expenses—something banks value highly.

Step 2: Show Genuine, Ongoing Savings

Lenders prefer to see genuine savings, typically built over at least 3–6 months. Parents can support this by:

• Matching savings contributions
• Setting milestone-based incentives
• Helping automate savings so consistency is clear

Even modest amounts saved consistently often matter more than occasional large deposits.

Step 3: Maintain Stable and Verifiable Income

Consistent income is a key factor in loan approval. Encourage your kids to:

• Maintain stable employment where possible
• Keep payslips and employment records
• Avoid frequent job changes right before applying for a loan

For casual or self-employed income, longer history and clear documentation become even more important.

Step 4: Reduce and Manage Existing Debts

One of the biggest barriers for first home buyers isn’t income—it’s existing debt. Banks closely assess:

• HECS/HELP debt (which can sometimes affect borrowing power)
• Car loans
• Credit cards (even if unused)
• Personal loans and buy-now-pay-later accounts

Practical Ways Parents Can Help

• Assisting with paying down HECS debt where appropriate
• Helping consolidate or clear car loans
• Closing unused credit cards
• Restructuring debts to improve cash flow

Reducing liabilities can significantly improve borrowing capacity—sometimes more than increasing income.

Step 5: Prepare for Bank Scrutiny

Before applying for a loan, banks will review several months of statements. Encourage habits such as:

• Minimising gambling or excessive discretionary spending
• Keeping transactions clear and explainable
• Avoiding last-minute large purchases
• A clean transaction history builds lender confidence.

Step 6: Explore Support Options 

Once strong foundations are in place, families can explore additional first home buyer support strategies. Options may include:

• Gifting part of a deposit
• Co-ownership or co-investing
• Family Guarantor Loans

Family Guarantor Loans

Guarantor loans allow parents to use equity in their property as additional security, potentially reducing deposit requirements and avoiding Lenders Mortgage Insurance (LMI). This option works best when:

• The borrower can comfortably service the loan
• The guarantee is limited and structured correctly
• There is a clear exit strategy to remove the guarantor over time

It’s a powerful tool—but only one piece of a broader plan.

Step 7: Get Professional Advice Early

Mortgage brokers can help families:

• Assess borrowing capacity realistically
• Identify weaknesses before applying
• Structure loans correctly from the start
• Create timelines that align with lender expectation

Helping your kids into the property market isn’t about one shortcut—it’s about preparation, structure, and informed decisions. By focusing on savings behaviour, debt management, income stability, and smart lending strategies, parents can dramatically improve their children’s chances of success.

Early advice often prevents costly mistakes and delays. Ready to kickstart your saving plans, or need help with the right home loan? Chat with a UFinancial team member today for support!!